HRM too often being Personnel Management

Most HR functions in SMEs do not operate within Human Resource Management paradigm and they should be called Personnel Management instead.

What they do is short-term with an ad hoc perspective rather than long-term and planned contribution, serves administrative rather than strategic purpose and involves managing employees collectively rather than individually.

And although they may seem sufficient for your business, they do not contribute much in your becoming a bigger player because they, like all administrative functions, are a stabilising force whereas to grow you need progressive forces.